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 Innovation  Fund  

Post-­‐Webinar  Questions  &  Answers    

Revenue Criteria 1. Can  the  1/3  match  be  made  by  the  umbrella  organization  to  which  the  applicant  

is  connected?  a. Perhaps.    If  the  umbrella  generally  subsidizes  its  subsidiary,  then  such  

support  would  not  qualify  as  a  match.    However,  a  special  allocation  from  the  umbrella  to  the  subsidiary  so  that  the  proposed  initiative  can  be  executed  would  qualify.    In  other  words,  support  needs  to  be  over  and  above  normal  transfers  and  specifically  allocated  for  the  proposed  project    

Program Content and Geography  2. We  are  an  international  NGO  with  an  office  in  US.    The  office  was  established  last  

year  but  the  NGO  has  been  in  existence  since  1995.    Are  we  eligible  to  apply?    a. Yes.    The  10  year  requirement  is  designed  to  demonstrate  continuity  in  

the  delivery  of  program,  and  not  the  establishment  of  the  US  based  nexus.      

3. We  are  an  organization  that  looks  to  innovate  its  funding  stream  by  having  the  government  of  the  country  take  over  the  funding  many  of  service  delivery  costs  we  have  historically  covered.  Is  this  a  viable  proposal?  

a. Generally  speaking,  we  would  not  consider  cost  shifting  to  governments  be  a  viable  proposal.    That  would  not  be  an  innovation  with  a  focus  on  market  or  quasi-­‐market  partnerships  for  social  problem  solving  at  sustained  and  scalable  levels.      

4. Can  we  use  the  grants  for  projects  that  will  improve  resource  mobilization  and  contribute  to  sustainable  revenue  (such  as  those  that  raise  an  organization’s  visibility  or  improve  efficiency)?    

a. Simply  improving  visibility  would  not  qualify.    However,  improved  efficiency  gets  a  “qualified  yes.”    If  by  improving  efficiency  you  are  freeing  

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up  resources  that  will  be  allocated  to  diversify  revenue  then  yes.    To  create,  build,  or  support  a  nonprofit  fundraising  team  or  effort,  no.    

5. If  we  are  a  re-­‐granting  organization  to  grassroots  groups  in  the  developing  world,  could  we  qualify?    

a. Generally  speaking,  regranting  does  not  qualify.    If  you  are  essentially  acting  as  a  US  based  fiscal  agent,  and  the  grassroots  group  is  an  independent  freestanding  organization,  then  you  as  the  U.S.  based  organization  could  apply  on  behalf  of  the  organization  for  funds  to  implement  that  organization’s  proposal.      

6. If  the  project  is  based  in  the  US,  but  involves  and  benefits  program  participants  who  live  in  developing  countries,  is  that  use  of  funds  eligible?  

a. Yes,  if  the  benefits  are  in  the  developing  world.      7. We  are  a  US  based  organization  that  trains  college  students  in  all  aspects  of  

small  enterprise.    They  carry  out  their  small  enterprise  on  college  campuses,  and  the  profit  they  generate  is  allocated  to  a  US  -­‐based  development  organization  that  uses  microfinance  to  support  small  enterprise  among  rural  women  farmers  in  Africa.  Is  this  a  model  that  would  fit?    

a. If  the  focus  of  the  organization’s  proposal  is  the  benefit  to  the  work  the  NGO  is  accomplishing  for  rural  women  in  Africa  and  the  US  program  is  simply  a  way  of  contributing  to  that,  the  model  would  fit.    If  the  focus  of  the  proposal  is  on  the  benefit  to  the  US  based  programs,  then  it  would  not  fit.    There  would  also  need  to  be  demonstrated  that  the  profit  is  necessarily  allocated  to  the  microfinance  fund,  that  it  is  built  in  to  the  process,  and  is  not  simply  a  voluntary  grant  on  the  part  of  the  US  based  organization.  

8. We  design  a  product  that  is  built  and  used  in  the  developing  world.    We  are  generating  funds  for  our  work  in  the  developing  world  by  starting  a  program  to  sell  our  product  in  the  U.S.    Would  this  US  effort  count  if  all  the  revenue  is  used  to  fund  our  work  in  the  developing  world?  

a. If:  a)  funds  from  US  sales  are  truly  creating  a  new  source  of  revenue,  and  a  grant  will  not  simply  cause  a  reallocation  of  funds  that  would  otherwise  support  domestic  program;  and  b)  revenue  is  necessarily  used  to  support  program  outside  the  US,  then  the  proposal  would  meet  the  guidelines.  

9. Is  global  biodiversity  conservation  eligible  under  the  Environment  category?  a. Yes.  

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10. Does  the  Health  critical  area  include  mental  health?  a. Yes.  

11. If  the  US  based  organization  is  helping  artisans/  artisan  groups  in  developing  countries  gain  access  to  new  markets  for  their  work,  is  that  eligible?  Would  the  fund  provide  support  for  several  pilot  situations  helping  artisans  gain  access  to  new  markets/speciality  retailers,  etc?  

a. This  is  well  within  the  intent  of  the  innovation  fund.      12. Whether  the  mission  to  advance  freedom  of  information  and  expression  in  

support  of  democracy  and  democratic  institution  building  would  qualify  for  this  RFP?        Would  the  fight  against  impunity  in  crimes  committed  against  human  rights  and  freedom  of  expression  defenders,  including  journalists,  qualify  for  this  RFP?  

a. Within  its  five  areas  of  focus,  the  Innovation  Fund  defines  its  current  priorities  in  the  developing  world  as  follows:  

i. Global  Health,  with  specific  reference  to  health  systems;  ii. Education,  with  specific  reference  to  sustained  broad  access  to  

basic  education  among  all  disadvantaged;  iii. World  Relations,  with  specific  reference  to  entrepreneurial  effort  

and  job  creation  in  conflict  areas  of  the  world;  iv. Environment,  with  specific  reference  to  access  to  clean  water;  v. Poverty,  with  specific  reference  to  innovations  in  increasing  family  

incomes,  small  and  micro  enterprise  strategies.  Policy  work,  advocacy,  or  projects  to  advance  a  cause  in  public  opinion  or  government  policy  corridors  are  not  qualified  for  Innovation  Fund  grants.  

13. Can  you  make  up  of  an  example  of  an  ideal  project  that  meets  the  requirements?  

a. There  is  no  ideal  project.    More  important,  we’re  confident  that  applicants  and  the  creativity  they  bring  to  the  problems  they  face  will  fashion  initiatives  that  meet  our  criteria  better  than  any  hypothetical  we  could  offer  up.    That  said,  the  following  is  a  relatively  clear,  if  unimaginative,  example  of  an  initiative  that  meets  our  criteria.          An  organization  in  the  clean  water  space  is  working  in  five  villages.    It  believes  it  has  developed  a  technology  that  can  turn  the  provision  of  clean  water  into  a  business.    It  has  a  plan  to  make  that  happen  but  it  needs  is  a  beta  test  in  two  villages  to  determine  the  skills  and  capabilities  that  are  needed  to  execute  the  plan  and  to  finalize  (because  the  Fund  is  

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targeted  at  the  go-­‐to-­‐market  phase)  revenue  structure  that  both  enables  entrepreneur  profit  and  (if  required)  payment  back  to  the  originating  technology  owner  via  fees  or  licenses.    They  are  seeking  funding  for  a  beta  test.    This  would  qualify.  

Application Process 14. In  regards  to  the  organizations  not  chosen  as  finalists,  will  they  have  

the  opportunity  to  receive  a  critique  of  their  proposals?  a. Yes.  

Other 15. Can  you  help  clarify  your  definition  of  "innovation"  i.e.  are  you  focusing  on  new  

methods  of  fundraising,  or  to  help  our  organization  expand  into  a  new  fundraising  method  for  us?  

a. By  innovation  we  do  not  mean  the  improvement  of  traditional  philanthropic  grant  acquisition.    We  are  really  talking  about  social  finance  and  the  investment  in  medium  sized  non-­‐profits  to  make  them  able  to  play  on  this  social  finance  field,  and  thus  provide  some  needed  stability.  

16. How  do  you  define  social  finance?  a. It  is  everything  from  program  related  investment  to  impact  investing.    

There  are  many  different  aspects  to  social  finance.    What  it  generally  means  is  strategies  that  have  the  ability  to  reach  markets  or  quasi  markets  in  a  reliable  way  to  generate  profits  for  social  problem  solving.      

17. Will  this  opportunity  be  offered  only  once,  or  will  it  be  offered  again  in  the  future?  

a. Yes.    Plans  are  for  this  to  be  an  ongoing  offering.  

 June  15,  2012